Question by Najat: Any one good with accounting ? I am stuck at this Question help plzzz?
The following balances were extracted from the books of Gao Yan at 31 december
Capital account – Gao Yan 640,000
Building 504,000
Provision for depreciation- building 37,600
Machinery 70,000
Provision for depreciation – machinery 22,400
Credit purchases 1,146,000
Credit sales 1,348,720
Stock at 1 Jan 75,600
Debtors 92,400
Creditors 74,600
Vehicles 90,400
Provision for depreciation – vehicles 18,400
Carriage inwards 760
General office expenses 22,320
Rent and rates 24,000
Provision for bad debts 2,000
Bad debts 5,040
Interest received 1,200
Wages and salaries 51,600
Insurance 13,200
Drawings – Gao Yan 84,000
Bank 58,400
Loan from Zheng Kai 140,000
Intrest on loan 10,000
Discount Allowed 1,600
Motor expenses 3600
Bank fixed deposit 32,000
Required a) Prepare a trail balance as at 31 december 2008 before taking into account the additional information given bellow
Additional information
1. Stock at 31 December 2008 107,200 $
2. salaries outstanding at 31 December 2008 5,200 $
3. The provision for bad debts is to be maintained at 1,400$
4, rent paid in advance for the following year 6,000
5. the vehicles are to be depreciated using the straight line method at rate of 25%
6. depreciation is to be provided on the cost of machinery at 20%
7. depreciation on building is to be provided at rate 2%
B) prepare a trading profit and loss account for the year ended 31st December
Best answer:
Answer by SoccerMom
I would call the manager and offer a discount on some ladies. Get the numbers more reasonable. Then try it again.
What do you think? Answer below!
Any one good with accounting ? I am stuck at this Question help plzzz? is a post from: Merchant Services